Reference is made to the announcements of the Company dated August 5, 2014,
August 8, 2014 and February 5, 2016 (all Hong Kong time) in relation to, among
other things, the offering of US$200 million principal amount of senior secured
notes (the "Notes"). Reference is also made to the announcements of the
Corporation dated August 1, 2016, August 12, 2016, August 17, 2016, August 29,
2016, September 1, 2016, September 12, 2016, 31 October, 2016 and 31 January,
2017(all Hong Kong time) in relation to, among other things, the forbearance
agreements the Company has entered into with the holders of the Notes (the
"Noteholders").

On March 20, 2017 (Calgary time), the Company and the Forbearing Holders
confirmed the signing of the Forbearance Reinstatement Agreement (the "FRA")
and a Note Exchange Agreement (the "NEA"). The principal payment terms of the
FRA include: (i) Payment of 20% of the Yield Maintenance Premium (the "YMP")
originally due on August 1, 2016 by cash; (ii) 80% of the YMP will be repaid on
August 1, 2017 as the bond matures; (iii) the Company agreed to repay bond
principal of approximately USD11.2 million by issuance of shares (the "Share
Issuance"), which therefore the NEA is to be executed; (iv) Payment of 20%
accrued interest and forbearance fee fell due on February 1, 2017 by cash and
the remaining amount to be repaid on August 1, 2017 as the bond matures; (v)
Regarding the USD22.5 million of principal repayment which fell due on February
1, 2017, both parties agreed to defer the repayment as follows: USD5.0 million
and USD10.0 millionare to be repaid by the end of April 2017 and June 2017
respectively. The remaining amount shall be repaid on or before the maturity
date of the bond, i.e. August 1, 2017.

The Board believes the entering into of the FRA and NEA is in the best
interests of the Company and its shareholders as a whole as the FRA and NEA
will provide the Company with additional time to repay or refinance the
indebtedness owed by the Company to the Noteholders under the Notes. The
Company is not aware that the Noteholders intend to enforce their rights in
respect of the Notes.

Completion of the share issuance is subject to regulatory approval including
approval from the Stock Exchange of Hong Kong Limited (the "Hong Kong Stock
Exchange") and compliance with the requirements under the Listing Rules. As the
share issuance may or may not proceed, shareholders and potential investors of
the Corporation are advised to exercise caution when dealing in the securities
of the Corporation.

ABOUT SUNSHINE OILSANDS LTD.

The Corporation is a Calgary based public corporation listed on the Hong Kong
Stock Exchange since March 1, 2012. The Corporation is focused on the
development of its significant holdings of oil sands leases in the Athabasca
oil sands region of Alberta, Canada. The Corporation owns interests in
approximately one million acres of oil sands and petroleum and natural gas
leases in the Athabasca region. The Corporation is currently focused on
executing milestone undertakings in the West Ells project area. West Ells has
an initial production rate of 5,000 barrels per day.

FORWARD LOOKING INFORMATION

This announcement contains forward-looking information relating to, among other
things, (a) the future financial performance and objectives of Sunshine; and
(b) the plans and expectations of the Corporation. Such forward-looking
information is subject to various risks, uncertainties and other factors. All
statements other than statements and information of historical fact are
forward-looking statements. The use of words such as "estimate", "forecast",
"expect", "project", "plan", "target", "vision", "goal", "outlook", "may",
"will", "should", "believe", "intend", "anticipate", "potential", and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based on Sunshine's experience, current beliefs,
assumptions, information and perception of historical trends available to
Sunshine, and are subject to a variety of risks and uncertainties including,
but not limited to those associated with resource definition and expected
reserves and contingent and prospective resources estimates, unanticipated
costs and expenses, regulatory approval, fluctuating oil and gas prices,
expected future production, the ability to access sufficient capital to finance
future development and credit risks, changes in Alberta's regulatory framework,
including changes to regulatory approval process and land-use designations,
royalty, tax, environmental, greenhouse gas, carbon and other laws or
regulations and the impact thereof and the costs associated with compliance.
Although Sunshine believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Readers are cautioned that the
assumptions and factors discussed in this announcement are not exhaustive and
readers are not to place undue reliance on forward- looking statements as the
Corporation's actual results may differ materially from those expressed or
implied. Sunshine disclaims any intention or obligation to update or revise any
forward-looking statements as a result of new information, future events or
otherwise, subsequent to the date of this announcement, except as required
under applicable securities legislation. The forward-looking statements speak
only as of the date of this announcement and are expressly qualified by these
cautionary statements. Readers are cautioned that the foregoing lists are not
exhaustive and are made as at the date hereof. For a full discussion of the
Corporation's material risk factors, see the Corporation's annual information
form for the year ended December 31, 2015 and risk factors described in other
documents we file from time to time with securities regulatory authorities, all
of which are available on the Hong Kong Stock Exchange at www.hkexnews.hk, on
the SEDAR website at www.sedar.com or the Corporation's website at
www.sunshineoilsands.com.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make no
representation as to its accuracy or completeness and expressly disclaim any
liability whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.

This announcement appears for information purpose only and does not constitute
an invitation or offer to acquire, purchase or subscribe for securities of
Sunshine Oilsands Ltd.

(a corporation incorporated under the Business Corporations Act of the Province
of Alberta,Canada with limited liability)

This announcement is made in accordance with the Inside Information Provision
under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the
Laws of Hong Kong) and Rule 13.09(2)(a) of the Rules Governing the Listing of
Securities on the Stock Exchange of Hong Kong Limited.

All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.

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